Subject: Itemized Deductions for Individuals Comment: The best way to simplify the taxation system in my opinion is to eliminate most of Schedule A. The only deduction that is inviolable is the deduction for State and Local Income Taxes (alternatively sales taxes), real estate taxes and personal property taxes...the reason being that money already expended for taxes should not be taxed again. The deductions for medical expenses and interest on real estate mortgages are not logical and in the case of real estate incurred interest, subsidizes a class of citizens as well as the real estate industry and has the additional deleterious effect of being a leading cause of price inflation in real estate. I suppose I should concede that the charitable contribution deduction has a beneficial effect but does it belong in the tax code? Isn't virtue supposed to be its own reward? This deduction is regularly and sometimes extravagantly abused. Miscellaneous deductions are basically a subsidy of one interest or another and should be eliminated. Finally, on the subject of tax rates, a flat tax (if it means one tax rate) is patently unfair, if not in fact than certainly in perception. Progressive tax rates still need to apply but at levels at or, hopefully, below the present rates if the bulk of deductions are eliminated.Try the numbers on this approach and see what you come up with. Thanks for the opportunity to comment. |